Operating a Remote Casino in the UK: Legal and Regulatory Guide

4 Aug

Introduction

Operating a remote casino in the UK requires careful navigation of a highly regulated and evolving legal landscape. With increasing emphasis on regulatory enforcement and responsible gambling, operators must ensure that their licensing and compliance practices meet the latest standards set by the Gambling Commission.

A remote gambling licence is required for any business that provides gambling services to customers via the internet, telephone, television, radio, or other forms of electronic or remote communication. This includes online casinos, betting websites, and mobile gambling apps. In essence, if a customer can access your gambling services without physically attending your premises, you are operating remotely and must hold a remote licence.

To operate a remote casino legally in the UK, a remote operating licence must be obtained from the Gambling Commission. This licence affirms compliance with the Gambling Act 2005, which governs all gambling activity within the jurisdiction.

Applicants must meet standards of integrity, financial responsibility, and operational competence. Requirements include detailed disclosure of business ownership, background checks on key personnel, the implementation of anti-money laundering controls, and systems to support player protection and responsible gambling. Failure to meet these requirements can result in licence refusal or enforcement action, including suspension or revocation.

Key Regulatory Changes in 2025

Licensed operators are expected to implement and maintain a comprehensive compliance framework. This includes systems for age and identity verification, safeguards against excessive or risky gambling behaviour, and clear player communication regarding fairness and terms.

In January 2025, new restrictions were applied to autoplay and quick spin features on online slots including:

minimum 5-second game speed for non-slot games;
ban on autoplay for all online gambling products;
ban on features that allow playing multiple games simultaneously;
operators must display net spend and net time information for casino games; and
ban on feature that allow the customer to reduce the time until the result is presented.

As of 28 February 2025, remote operators are required to conduct financial vulnerability checks at £150 net deposits over 30 rolling days.

In April 2025, not only was the statutory gambling levy was introduced but also the slots stake limit of £5 limit for all adults went live and the £2 limit for adults aged 18 to 24 went live 21 May 2025.

These developments mark a shift toward more rigorous oversight of player protection and affordability.

Licensing and Application Process

To operate a remote casino in the UK, a Remote Operating Licence must be obtained from the Gambling Commission. The application is submitted online and requires detailed information about business ownership, financial stability, technical systems, and responsible gambling measures. Key personnel must also apply for Personal Management Licences (PMLs), which include background checks.

Applicants must provide tailored AML policies, financial forecasts, system architecture, and evidence of game fairness. The Gambling Commission may request additional details before approving a licence.

Common oversights include vague AML procedures, failure to disclose ownership structures, delayed PML applications, and unrealistic business plans. Weak documentation around technical security or player protection can also lead to delays or rejection.

Once licensed, operators must comply with ongoing requirements such as reporting, audits, and adherence to the Licence Conditions and Codes of Practice (LCCP). Non-compliance can lead to fines, suspension, licence review or in serious cases licence revocation.

Fees and Additional Costs

Operating a remote casino in the UK involves both upfront and ongoing financial commitments. Licensing fees are set by the Gambling Commission and are based on the operator’s gross gambling yield (GGY), the total amount retained by the operator after paying out winnings. This tiered structure is designed to ensure proportionality, so that larger operators contribute more to regulatory oversight.

For example, operators with a GGY under £550,000 face an application fee of around £2,640 and an annual fee of £2,604. In contrast, those with a GGY exceeding £1 billion may pay over £57,000 in application fees and upwards of £157,000 annually. This model reflects ongoing regulatory policy aimed at balancing industry growth with consumer protection, and ensuring the Gambling Commission has the resources to monitor high-risk, high-revenue operators effectively.

In addition to licensing costs, operators must also budget for compliance audits, technical testing (e.g., RNG and cybersecurity certifications), software licensing, data protection measures, and potential legal or consultancy fees, all of which can significantly increase operational expenses.

From April 2025, a statutory gambling levy also applies. Replacing the former voluntary funding model, this levy mandates contributions from operators to support research, prevention, and treatment of gambling-related harm. Remote operators typically pay 1.1% of their GGY under the new system. The funds raised are distributed primarily to NHS treatment services (50%), prevention initiatives (30%), and research and innovation (20%).

Common Pitfalls and Risks

Operators frequently face challenges when compliance systems are underdeveloped or outdated. Common issues include inadequate anti-money laundering (AML) procedures, failure to detect and manage risky gambling behaviour, and insufficient technical or data security controls. In 2020, Betway was fined £11.6 million by the Gambling Commission for failing to protect vulnerable customers and neglecting to intervene with players showing signs of problem gambling. This case highlighted serious gaps in player monitoring and responsible gambling tools.

Similarly, William Hill faced a £6.2 million penalty in 2022 after deficiencies were found in their AML processes, including poor customer due diligence and failure to conduct timely risk assessments. These investigations revealed that lapses in compliance can lead to significant financial penalties and reputational damage.

Breaking licence obligations can have severe consequences beyond fines. The Gambling Commission has the authority to issue formal warnings, impose conditions on licences, suspend operations, or fully revoke licences if breaches persist or are particularly serious. Licence revocation effectively shuts down an operator’s ability to legally offer gambling services in the UK, posing a major business risk.

To mitigate these risks, operators must conduct regular risk assessments, maintain robust internal audits, and ensure ongoing staff training. A proactive compliance culture is essential to protect both players and the operator’s licence.

Conclusion

Operating a remote casino in the UK offers significant commercial opportunities but requires navigating a complex and evolving regulatory landscape. Adherence to the Gambling Commission’s strict requirements is essential for obtaining and maintaining a licence, managing operational risks, and fostering player trust. As the regulatory environment tightens—with greater emphasis on affordability checks, stricter oversight of game design, and the increasing use of technologies like AI for compliance monitoring—operators must take a proactive and forward-looking approach.

This means continually reviewing and strengthening governance frameworks, upgrading technical systems to meet new standards, and ensuring internal policies reflect the latest compliance obligations. By investing in robust risk management and operational controls, remote casino operators can not only meet current regulations but also prepare for upcoming changes, supporting sustainable, compliant growth in the dynamic UK market.

Our specialist gambling team can advise on any regulatory and compliance related matters you might have. Please contact Arianne King, for more information.

This article is intended for information purposes only and provides a general overview of the relevant legal topic. It does not constitute legal advice and should not be relied upon as such. While we strive for accuracy, the law is subject to change, and we cannot guarantee that the information is current or applicable to specific circumstances. Costigan King accepts no liability for any reliance placed on this material. For further details concerning the subject of the article or for specific advice, please contact a member of our team.